Reliance Jio lands its 9th and 10th investment – ₹4,546.80 crore from TPG and ₹1,894.50 crore from LVMH-backed L Catterton

• Reliance Jio has raised ₹4,546.80 crore from global alternative asset firm TPG.
• With the investment, TPG gets a 0.93% stake in Jio.
• Louis Vuitton owner LVMH backed L Catterton has also invested ₹ 1894.50 crore for a 0.39% stake.
• Jio now has an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.

Mukesh Ambani’s Reliance Jio has raised ₹4,546.80 crore from global alternative asset firm TPG. With the investment, TPG gets a 0.93% stake in Jio.

It also announced its 10th deal ₹ 1894.50 crore by L Catterton, one of the world’s largest consumer focused private equity firms. L Catterton is built in a partnership with LVMH and Groupe Arnault. L Catterton will now have a 0.39% equity stake in Jio.

This takes Jio’s total investments to ₹104,326.95 crore from the likes of Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton since April 22, 2020.

Jio now has an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.


“We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.

According to the company, TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.

“We are excited to play an early role in Jio's journey as they continue to transform and advance India's digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come,” said Jim Coulter, Co-CEO TPG.

Ambani is also counting on L Catterton’s experience in creating consumer-centric businesses.

“Over our more than 30 year history, we have established a track record of building many of the most important brands across all consumer categories and geographies, from retailers, omni-channel and digitally native brands. We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities," said Michael Chu, Global Co-CEO of L Catterton in a statement.

According to Business Insider’s sources, the next investment is set to come through from Saudi Arabia’s sovereign fund – Public Investment Fund, which comes under the royal family of Mohammad bin Salman‎. MBS, as he is popularly known, is one the biggest tech investors. Some joke that Silicon Valley is funded by MBS – with investments in Uber, Lyft and $45 billion in SoftBank’s Vision Fund.

The deal is set to be closed in the coming week.

Reliance Jio gets to pick between Google and Microsoft for the last tranche of investments, two sources in the know told Business Insider. “The ball is in Reliance’s court – they get to pick and choose. They will decide what is the best strategic fit for Reliance and will evaluate how smart the money is,” said the source.

SEE ALSO:
EXCLUSIVE: Inside the Reliance Jio deals – Akash Ambani was the one to choose Facebook, the next big investments and the ideas sold to investors